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AFFORDABLE HOUSING PURCHASE UNDERWRITING GUIDELINES

Capacity:

  1. 33% Housing Debt to Income ratio
  2. 38% Total Debt to Income ratio
  3. 10% remaining disposal income on after-purchase household budget to allow for savings and emergencies
  4. Two years stable income level

Collateral:

  1. Owner-occupancy required
  2. 105% maximum Loan to Value ratio
  3. Subject property heating, electrical, plumbing and mechanical systems in operating condition
  4. No peeling paint
  5. Roof life expectancy of approximately 5 years
  6. Satisfactory professional appraisal
  7. Satisfactory CNHS staff walk-through

Capital:

  1. Liquid assets to pay credit report fee of $28.00
  2. Liquid assets to pay appraisal report fee of $350.00
  3. Liquid assets to pay year’s premium of approximately $400.00 for homeowners insurance
  4. Liquid assets to pay any remaining closing costs not financed by loan

Credit:

  1. Timely rent payments within past two year period, if applicable
  2. Timely housing utility payments, if applicable
  3. No unpaid judgments
  4. No unpaid charge-offs
  5. No bankruptcies within past seven year period
  6. No unpaid non-medical collection accounts
  7. No unpaid medical collection accounts exceeding $5,000.00
  8. Record of monthly payments or proof of payment on medical collection accounts with total balance under $5,000
  9. Acceptable letter of explanation regarding delinquent accounts

CNHS does not pre-qualify or pre-approve applications.  The CNHS Revolving Loan Committee action is required on all loan applications.

 

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